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Broadcom Inc. (AVGO) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $304.37, marking a +0.78% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.58%. Elsewhere, the Dow gained 0.45%, while the tech-heavy Nasdaq added 1.13%.
Heading into today, shares of the chipmaker had lost 5.18% over the past month, lagging the Computer and Technology sector's loss of 4.08% and the S&P 500's loss of 2.34% in that time.
Investors will be hoping for strength from AVGO as it approaches its next earnings release, which is expected to be June 13, 2019. On that day, AVGO is projected to report earnings of $5.17 per share, which would represent year-over-year growth of 5.94%. Meanwhile, our latest consensus estimate is calling for revenue of $5.66 billion, up 12.95% from the prior-year quarter.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $23.13 per share and revenue of $24.43 billion. These results would represent year-over-year changes of +11.1% and +17.18%, respectively.
Investors should also note any recent changes to analyst estimates for AVGO. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AVGO is currently a Zacks Rank #3 (Hold).
Looking at its valuation, AVGO is holding a Forward P/E ratio of 13.06. Its industry sports an average Forward P/E of 19.04, so we one might conclude that AVGO is trading at a discount comparatively.
Also, we should mention that AVGO has a PEG ratio of 1.08. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Semiconductors was holding an average PEG ratio of 2.19 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AVGO in the coming trading sessions, be sure to utilize Zacks.com.
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Broadcom Inc. (AVGO) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Broadcom Inc. (AVGO - Free Report) closed at $304.37, marking a +0.78% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.58%. Elsewhere, the Dow gained 0.45%, while the tech-heavy Nasdaq added 1.13%.
Heading into today, shares of the chipmaker had lost 5.18% over the past month, lagging the Computer and Technology sector's loss of 4.08% and the S&P 500's loss of 2.34% in that time.
Investors will be hoping for strength from AVGO as it approaches its next earnings release, which is expected to be June 13, 2019. On that day, AVGO is projected to report earnings of $5.17 per share, which would represent year-over-year growth of 5.94%. Meanwhile, our latest consensus estimate is calling for revenue of $5.66 billion, up 12.95% from the prior-year quarter.
AVGO's full-year Zacks Consensus Estimates are calling for earnings of $23.13 per share and revenue of $24.43 billion. These results would represent year-over-year changes of +11.1% and +17.18%, respectively.
Investors should also note any recent changes to analyst estimates for AVGO. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AVGO is currently a Zacks Rank #3 (Hold).
Looking at its valuation, AVGO is holding a Forward P/E ratio of 13.06. Its industry sports an average Forward P/E of 19.04, so we one might conclude that AVGO is trading at a discount comparatively.
Also, we should mention that AVGO has a PEG ratio of 1.08. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Semiconductors was holding an average PEG ratio of 2.19 at yesterday's closing price.
The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 173, putting it in the bottom 33% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow AVGO in the coming trading sessions, be sure to utilize Zacks.com.